Dollar Strengthens in Light Trading

The dollar continued to strengthen against most major currencies in light trading Friday.

Gold prices were mixed. At Republic National Bank at 4 p.m. EDT, gold bullion was quoted at $342 an ounce, unchanged from Thursday.

Volume was thinner than usual in the United States, with many traders reluctant to make major commitments before the upcoming Memorial Day weekend, analysts said. U.S. financial markets will be closed Monday.

Recent comments by U.S. Treasury Secretary James A. Baker III that he was satisfied with current dollar levels helped spark a round of dollar buying by traders moving to prepare for a resultant strengthening of the dollar, said Gary Dorsch, senior money-market analyst for G. H. Miller & Co. in Chicago.

Dealers said the dollar also strengthened on prospects of faster U.S. economic growth.

Traders who sold dollars during the currency’s slump earlier this month bought them back on the assumption that their price would continue to rise.